Bahrain economy grows in third quarter of 2025

Bahrain’s economy expanded by 4 percent year on year in the third quarter of 2025, supported by growth in both the oil and non-oil sectors, the finance ministry said.

Oil activities rose 9.3 percent during the period, the ministry said in a statement. It gave no details on oil production or exports.  

Non-oil activities increased 3.1 percent annually, with the real estate sector logging the highest growth at 5.4 percent. Financial and insurance activities grew by 5 percent, construction by 4.4 percent and manufacturing by 3.9 percent.

The non-oil sector contributed 85 percent to real GDP in the quarter ended September 2025, the ministry said.

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Last month Bahrain approved fiscal measures intended to boost non-oil revenue and arrest a sharp rise in government debt. 

The 11-point package includes higher electricity and water tariffs, the introduction of a corporate tax, increases in fuel and natural gas prices for businesses and a 20 percent cut in administrative government spending.

S&P Global Ratings in November downgraded the Gulf nation’s sovereign credit rating by one notch from B+ to B, forecasting government debt would climb to nearly 140 percent of GDP by 2028 from 118 percent in 2024. The rating agency cited lower oil prices and persistent fiscal deficits.